HMO Portfolio Bridge in 14 days
£2,650,000
Auction Finance
Auction finance is a type of bridging loan used for buying property at auction and specifically to complete a transaction quickly (typically within 14 or 28 days, in line with the auction house’s requirements). Auction purchases must typically be completed within 28 days of the auction, and in most cases, a conventional mortgage either cannot be arranged (if the property is not habitable) or will not be available within that time. The auction house will tend to request at least 10% of the purchase price, plus the auction fees, at the time of bidding. Borrowers will then have 28 days to complete the purchase.
The array of properties available at auctions offers boundless investment opportunities when using this funding solution. There are no constraints on the specific type of property borrowers can consider, as it applies to a diverse range of property categories. Auction finance can be used for various asset types including residential, commercial, semi-commercial, and land with planning.
Before securing an auction finance loan, it’s crucial to consider several key factors. Firstly, borrowers should assess their budget and ensure it covers not only the purchase price but also potential renovation costs and associated fees. Choose the appropriate loan type, be it a bridging loan or mortgage, aligning with your financial needs. Interest rates, fees, and repayment terms, quotes from lenders, must all be assessed and examined in advance. Borrowers should develop a clear exit strategy for loan repayment, understand the lender’s specific lending criteria, and conduct thorough due diligence on the property on which the borrower intends to bid, considering its condition, market value, and potential for future returns.
Unless the borrower has the means to purchase the property outright with cash, obtaining a loan is essential to finance the bid at an auction. It’s essential to consult with an expert master broker beforehand, as the financing must be pre-approved prior to bidding at the auction.
Product features include:
- Borrow from £10,000
- Up to 75% LTV
- Quick turnaround times
- Terms up to 24 months
- For any property type in England & Wales
- Adverse credit considered* (subject to an underwriter’s approval)
How we can help?
FinSpace is a master broker with access to over 130+ lenders based in central London covering the UK and Wales. Our team of 30+ experts will talk you through the application process and package your application from start to finish. We can browse the market and ensure to provide you with market-leading competitive rates to suit your circumstances.
Speak to a consultant
How we can help?
FinSpace is a master broker with access to over 130+ lenders based in central London covering the UK and Wales. Our team of 30+ experts will talk you through the application process and package your application from start to finish. We can browse the market and ensure to provide you with market-leading competitive rates to suit your circumstances.
Speak to a consultant
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